Korea's home appliance makers are expecting a boom in Iran after the market opens up with the nuclear deal. Even though their sales wouldn't rise fast, the Iranian market is large enough to increase the consumption of Korean-made appliances steadily given its population of 80 million and per-capita GDP of over US$5,000. Brands like Samsung and LG accounted for 70-80 percent of the market before the sanctions by the west took effect. Local consumers still regard them premium brands.
Iranians' purchasing power is considered significant. In addition to the usual demand for electronics items, market analysts said there will be pent-up demand existing due to years of sanctions. Other than average consumers, there would be a substantial number of high-income consumers who became rich through oil-related businesses. Once they start buying up high-priced LCD TVs and high-spec smartphones, there is no telling how many of them would be sold. The Middle East in the west of Iran is one of the largest markets for upscale TVs with the price over $1,000.
Air-conditioners are another item that Korean electronics manufacturers expect to sell a lot in Iran. They hope to sell air-conditioning parts and components as well as finished goods. Drum washing machines will also be received well among Iranian consumers. According to the Korea Trade-Investment Promotion Agency, Iran's drum washer market quadrupled to $68 million in 2013 from only $13 million in 2011. During the sanctions period, Korean companies had to work with local partners to assemble finished items by importing washing machine parts from Korea. Other than air-conditioners and washing machines, Korean home appliance makers expect the demand for gas ranges and small-sized refrigerators to rise.
